Two details cost people money. First, gratuity is calculated on basic salary only, never allowances, which is one reason the base-versus-allowances split in your offer matters beyond the monthly number. Second, formulas differ by country and by resignation versus termination, and Saudi Arabia and Qatar use their own calculations, so use the official calculator for the country in question rather than a colleague''s memory. When comparing offers, price the gratuity in: two otherwise equal packages can differ by a month''s salary per year worked. See base salary vs total package and the expected salary guide.
End-of-Service Gratuity
End-of-service gratuity is the lump-sum payment Gulf employers owe departing employees, calculated from basic salary and years of service. In the UAE private sector it is 21 days of basic pay per year for the first five years and 30 days per year after, capped at two years' wages, with no entitlement under one year of service.
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Adil Dahmani
Adil Dahmani is the founder of Yalliq, the AI career copilot for Arabic-speaking professionals across MENA.